If Qualified Production Activities Income (QPAI)cannot Be Used in the Calculation

question 117

True/False

If qualified production activities income (QPAI)cannot be used in the calculation of the domestic production activities deduction in 2014 because of the taxable income limitation,the product of the amount not allowed multiplied by 9% can be carried over for 5 years.

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Definitions:

FICA Tax Rates

The percentages of social security and Medicare taxes that both employers and employees must pay, according to the Federal Insurance Contributions Act.

Net Pay

The amount of an employee's earnings remaining after all deductions, such as taxes and retirement contributions, have been taken out.

Overtime Rate

The higher pay rate employees earn for hours worked in excess of standard full-time hours.

Weekly Pay

Compensation paid to employees on a weekly basis.